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ix Indonesian and multinational companies vowed on Wednesday to strengthen their commitment to reduce carbon emissions and support pro-environment business practices by establishing the Indonesian Business Council for Sustainable Development (IBCSD).

The agreement to set up the council — which is the national chapter of World Business Council for Sustainable Development (WBCSD) — was signed by representatives of paper maker Asia Pacific Resources International Ltd. (APRIL), national airline Garuda Indonesia, energy company PT Medco Power Indonesia, state-owned Bank Negara Indonesia, telecommunications operator PT Bakrie Telecom and cement maker PT Holcim Indonesia.

Medco Power president director Fazil E. Alfitri said that in the short term the council would initiate a partnership with other companies operating in Indonesia to develop environmentally friendly business practices and strengthen the country’s capacity to promote sustainable development, such as through corporate social responsibility programs.

“In Medco Power, for example, we have developed eco-friendly power plants, including geothermal, hydro and bio-mass plants,” he told The Jakarta Post.

Bakrie Telecom corporate services director Rakhmat Junaidi said that his company had made other such moves, including cutting the amount of electricity used by its base transceiver station (BTS) towers and reducing the amount of paper used to make its mobile phone credit vouchers.

“We use 5-in-1 credit vouchers, in which every voucher has five credit values where usually a voucher only has one credit value. By doing this, we minimize paper use,” he said.

Meanwhile, Indonesian Chambers of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto welcomed the initiative, saying that the establishment of the council was a significant effort from the business sector to contribute to sustainable development in the country.

Kadin deputy chairwoman for climate change and eco-friendly development Shinta Widjaja Kamdani said that the best practices implemented by the council’s founding members would serve as examples for other companies.

“We will offer their best practices as well as technology to other local companies, including small and medium-sized ones,” she said.

Shinta said Kadin would also seek suggestions from the council for a proposal it was currently preparing.

The proposal, he said, would among other things include tax incentives for companies promoting sustainable development, and would be submitted to the government in the next three months.

“Such tax incentives will be important to encourage companies to contribute to sustainable development,” she said.

National Council on Climate Change chairman Rachmat Witoelar said that the challenge that the companies faced was to integrate their green efforts into their corporate strategy rather than simply run separate corporate responsibility programs.

The efforts, he said, should cover all aspects of production, from selecting raw materials to reducing emissions from goods transportation.

He said the government spent a lot of money cleaning up pollution produced by industries, including toxic waste and carbon dioxide.

Rachmat said the government could promote green efforts by offering tax incentives, such as lowering taxes on purchases of non-polluting production machines.